Gym Membership (Consumer Protection)

Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved:	2024-09-21
CLNP Page ID:	2400
Page Categories:	Consumer Protection
Citation:	Gym Membership (Consumer Protection), CLNP 2400, <https://rvt.link/cr>, retrieved on 2024-09-21
Editor:	MKent
Last Updated:	2024/08/05

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Consumer Protection Act, 2002, S.O. 2002, c. 30, Sched. A

Application

29 (1) Sections 30 to 36 apply in respect of personal development services or proposed personal development services for which,

(a) payment in advance is required; and

(b) the consumer’s total potential payment obligation, excluding cost of borrowing, exceeds a prescribed amount. 2002, c. 30, Sched. A, s. 29 (1).

Exceptions

(2) Sections 30 to 36 do not apply to personal development services that are provided,

(a) on a non-profit or co-operative basis;

(b) by a private club primarily owned by its members;

(c) as an incidental part of the goods or services that are being supplied to the consumer;

(d) by a supplier funded or run by a charitable or municipal organization or by the Province of Ontario or any of its agencies; or

(e) by a golf club. 2002, c. 30, Sched. A, s. 29 (2).

Transition

(3) Sections 30 to 36 do not apply to a personal development services agreement in existence before this section is proclaimed in force but do apply if a pre-existing agreement is extended or renewed after this section is proclaimed in force. 2002, c. 30, Sched. A, s. 29 (3).

Same

(4) Agreements that are in existence before sections 30 to 36 are proclaimed in force are governed by the Prepaid Services Act as it existed immediately before its repeal by the Consumer Protection Statute Law Amendment Act, 2002. 2002, c. 30, Sched. A, s. 29 (4).

Requirements for personal development services agreements

30 (1) Every personal development services agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements. 2002, c. 30, Sched. A, s. 30 (1).

Agreements for one year only

31 (1) No personal development services agreement may be made for a term longer than one year after the day that all the services are made available to the consumer. 2002, c. 30, Sched. A, s. 31 (1). Deemed separate agreement

(2) Any personal development services agreement that provides for a renewal or an extension of the agreement beyond one year shall be deemed to create a separate agreement for each renewal or extension of one year or less. 2002, c. 30, Sched. A, s. 31 (2).

Renewal provision

(3) A personal development services agreement that provides for the renewal or extension of the agreement is not valid unless the supplier complies with the prescribed requirements. 2002, c. 30, Sched. A, s. 31 (3).

Deemed non-renewal of agreement

(4) A personal development services agreement that provides for a renewal or extension of the agreement shall be deemed not to be renewed or extended if the consumer notifies the supplier, before the time for renewal or extension, that the consumer does not want to renew or extend. 2002, c. 30, Sched. A, s. 31 (4).

Monthly renewals

(5) Subsections (2) and (3) do not apply to an agreement providing for successive monthly renewals if the consumer has the option of terminating on one month’s notice or less. 2002, c. 30, Sched. A, s. 31 (5).

Only one agreement

32 (1) No supplier shall enter into a new agreement for personal development services with a consumer with whom the supplier has an existing agreement for personal development services unless the new agreement is for personal development services that are distinctly different from the services provided under the existing agreement. 2002, c. 30, Sched. A, s. 32 (1). New agreement void

(2) Any new agreement entered into in contravention of subsection (1) is void. 2002, c. 30, Sched. A, s. 32 (2).

Same

(3) For the purposes of subsection (1), a different term or a different commencement date does not constitute a distinct difference in the personal development services to be provided. 2002, c. 30, Sched. A, s. 32 (3).

Renewals exempted

(4) Nothing in this section prevents a personal development services agreement from being renewed during the term of the agreement provided that the renewal meets the requirements under section 31. 2002, c. 30, Sched. A, s. 32 (4).

Initiation fee

33 No supplier of personal development services shall,

(a) charge a consumer more than one initiation fee; or

(b) charge an initiation fee that is greater than twice the annual membership fee. 2002, c. 30, Sched. A, s. 33.

Instalment plans

34 (1) Every supplier of personal development services shall make available to consumers at least one plan for instalment payments of membership fees and initiation fees, if applicable, that allow consumers to make equal monthly payments over the term of the personal development services agreement. 2002, c. 30, Sched. A, s. 34 (1). Same

(2) No supplier shall provide an instalment payment plan through which the total amount paid by instalments exceeds the membership or initiation fee, if applicable, by more than 25 per cent. 2002, c. 30, Sched. A, s. 34 (2).

Cancellation: cooling-off period

35 (1) A consumer may, without any reason, cancel a personal development services agreement at any time within 10 days after the later of receiving the written copy of the agreement and the day all the services are available. 2002, c. 30, Sched. A, s. 35 (1); 2013, c. 13, Sched. 2, s. 2.

Cancellation: failure to meet requirements

(2) In addition to the right under subsection (1), a consumer may cancel a personal development services agreement within one year after the date of entering into the agreement if the consumer does not receive a copy of the agreement that meets the requirements under section 30.

O. Reg. 17/05: GENERAL under Consumer Protection Act

Prescribed amount

27. The prescribed amount for the purpose of clause 29 (1) (b) of the Act is $50. O. Reg. 17/05, s. 27.

Requirements for agreement where no alternate facility

28. (1) This section applies to a personal development services agreement,

(a) for a facility that is available; or

(b) for a facility that is not available, if the agreement does not provide for the consumer to use an alternate facility until the primary facility becomes available. O. Reg. 17/05, s. 28 (1).

(2) For the purpose of subsection 30 (1) of the Act, a personal development services agreement described in subsection (1) shall be signed by the consumer and the supplier and shall set out the following information:

1. The name of the consumer.

2. The name of the supplier and, if different, the name under which the supplier carries on business.

3. The telephone number of the supplier, the address of the premises from which the supplier conducts business, and information respecting other ways, if any, in which the supplier can be contacted by the consumer, such as the fax number and e-mail address of the supplier.

4. The names of,

i. the person, if any, who solicited the consumer in connection with the agreement,

ii. the person, if any, who negotiated the agreement with the consumer, and

iii. the person who concluded the agreement with the consumer.

5. The address of the facility at which the personal development services will be available.

6. An itemized list of the personal development services that the supplier is to make available to the consumer, that fairly and accurately describes each service.

7. For each personal development service contracted for, the date on or as of which it will be available to the consumer.

8. The reduction, if any, in the price payable by the consumer if a personal development service is not available on the date specified under paragraph 7.

9. If a personal development service will not be available at the time the consumer is to make a payment in respect of it,

i. a statement that, if a personal development service is not available at the time the consumer is to make a payment in respect of it, the consumer shall make the payment through the trust corporation whose name and address are set out in the agreement, and

ii. the name and address of the trust corporation.

10. A statement containing the text set out in subsection (3) and, if applicable, the additional text set out in subsection (4),

i. which shall be in at least 10 point type, except for the heading which shall be in at least 12 point bold type, and

ii. which shall appear on the first page of the agreement, unless there is a notice on the first page of the agreement in at least 12 point bold type indicating where in the agreement the statement appears.

11. If the agreement includes a trade-in arrangement, a description of the trade-in arrangement and the amount of the trade-in allowance.

12. The total amount payable by the consumer and the terms and methods of payment.

13. The currency in which amounts are expressed, if it is not Canadian currency.

14. The date on which the agreement is entered into.

15. The commencement date of the agreement and the date on which the agreement expires.

16. If the agreement provides for the renewal or extension of the agreement,

i. the requirements for renewal or extension of the agreement, as set out in section 30,

ii. the manner in which the supplier shall deliver a notice about renewal and extension to the consumer, and the agreement may require the supplier to use one of the following methods or may permit the supplier to choose one method from among one or more of the following methods:

A. by mail or personal delivery to an address specified by the consumer in the agreement,

B. by e-mail to an e-mail address specified by the consumer in the agreement,

C. by fax to a fax number specified by the consumer in the agreement, or

D. in some other manner specified by the consumer in the agreement, and

iii. that the agreement shall be deemed not to be renewed or extended if the consumer notifies the supplier, before the time for renewal or extension, that the consumer does not want to renew or extend. O. Reg. 17/05, s. 28 (2).

(3) The statement mentioned in paragraph 10 of subsection (2) shall set out the following:

Your Rights under the Consumer Protection Act, 2002

You may cancel this agreement at any time during the period that ends ten (10) days after the later of the day you receive a written copy of the agreement and the day all the services are available. You do not need to give the supplier a reason for cancelling during this 10-day period.

In addition, there are grounds that allow you to cancel this agreement. You may also have other rights, duties and remedies at law. For more information, you may contact the Ministry of Consumer and Business Services.

To cancel this agreement, you must give notice of cancellation to the supplier, at the address set out in the agreement, by any means that allows you to prove the date on which you gave notice. If no address is set out in the agreement, use any address of the supplier that is on record with the Government of Ontario or the Government of Canada or is known by you.

If you cancel this agreement, the supplier has fifteen (15) days to refund any payment you have made and return to you all goods delivered under a trade-in arrangement (or refund an amount equal to the trade-in allowance).

O. Reg. 17/05, s. 28 (3).

(4) If the consumer is to receive goods under the agreement, the statement mentioned in paragraph 10 of subsection (2) shall also set out the following:

If the supplier requests in writing repossession of any goods that came into your possession under the agreement, you must return the goods to the supplier’s address or allow one of the following persons to repossess the goods at your address:

The supplier.

A person designated in writing by the supplier.

If you cancel this agreement, you must take reasonable care of any goods that came into your possession under the agreement until one of the following happens:

The supplier repossesses the goods.

The supplier has been given a reasonable opportunity to repossess the goods and twenty-one (21) days have passed since the agreement was cancelled.

You return the goods.

The supplier directs you in writing to destroy the goods and you do so in accordance with the supplier’s instructions.

O. Reg. 17/05, s. 28 (4).

Requirements for agreement where alternate facility to be used

29. (1) This section applies to a personal development services agreement for a facility that is not available, if the consumer agrees in writing to use an alternate facility until the primary facility becomes available. O. Reg. 17/05, s. 29 (1).

(2) For the purpose of subsection 30 (1) of the Act, a personal development services agreement described in subsection (1) shall be signed by the consumer and the supplier, shall set out the information referred to in paragraphs 1, 2, 3, 4, 10, 11, 12, 13, 14, 15 and 16 of subsection 28 (2) and shall set out the following information:

1. The address of the primary facility and the address of the alternate facility.

2. An itemized list of the personal development services that the supplier is to make available to the consumer at the alternate facility, that fairly and accurately describes each service and that sets out the price payable for the services on a monthly basis.

3. An itemized list of the personal development services that the supplier is to make available to the consumer at the primary facility, that fairly and accurately describes each service.

4. For each personal development service that the supplier is to make available to the consumer at the alternate facility, the date on which it will be available, and for each personal development service that the supplier is to make available to the consumer at the primary facility, the date on which it will be available.

5. The reduction, if any, in the price payable by the consumer if a personal development service is not available at the facility at which it is supposed to be available on the date on which it is supposed to be available at that facility. O. Reg. 17/05, s. 29 (2).

Supplier obligations for renewal or extension

30. (1) For the purpose of subsection 31 (3) of the Act, a personal development services agreement that provides for the renewal or extension of the agreement is not valid unless the supplier complies with the requirements of subsection (2). O. Reg. 17/05, s. 30 (1).

(2) At least 30 days but not more than 90 days before the agreement expires, the supplier shall deliver to the consumer, in the manner specified in the agreement pursuant to subparagraph 16 ii of subsection 28 (2),

(a) a written notice about renewal or extension,

(i) setting out the date of the proposed renewal or extension of the agreement,

(ii) stating that under the Consumer Protection Act, 2002, the supplier is required to deliver the notice to the consumer, in the manner specified in the agreement, at least 30 days but not more than 90 days before the agreement expires,

(iii) setting out the address of the premises from which the supplier conducts business and information respecting other ways, if any, in which the supplier can be contacted by the consumer, such as the fax number and e-mail address of the supplier, and

(iv) stating that the agreement will not be renewed or extended if, before the date set out under subclause (i), the consumer notifies the supplier, at the address set out under subclause (iii) or by contacting the supplier in some other way as set out under that subclause, that the consumer does not want to renew or extend the agreement; and

(b) a copy of the agreement that clearly notes all changes that the supplier has made to the agreement. O. Reg. 17/05, s. 30 (2).

(3) A notice under clause (2) (a) that is sent to the consumer by registered mail shall be deemed to be delivered on the third day after the day of mailing. O. Reg. 17/05, s. 30 (3).